Arrested suspect denies that DEA-seized bitcoins are his

Lawyer tells Ars: "[My client has] never used Bitcoin, no."

The defense attorney for a South Carolina man facing drug charges is now denying that his client is the Casey Jones who had bitcoins seized by the Drug Enforcement Administration (DEA) three months ago.

In April 2013, the DEA seized 11.02 bitcoins, worth $825 at present exchange rates. The agency then posted the details of the seizure in its Official Notification (PDF, updated), including the name of the suspect, “Eric Daniel Hughes AKA Casey Jones.” On June 6, 2013, a South Carolina man named Eric Daniel Hughes was arrested and charged by the state with illegal distribution of marijuana, clonazepam, and other controlled substances. He has yet to be served with federal charges.

A DEA spokesperson, Barbara Carreno, confirmed to Ars on Tuesday that this is the first time the drug agency has seized bitcoins. But Hughes' attorney, David Aylor, says the bitcoins aren't his client's.

“[My client] doesn’t use and has never used the name Casey Jones,” Aylor told Ars on Tuesday.

Despite the April 2013 seizure, it wasn’t until June 2013 that the Bitcoin community and reddit seemed to take notice of the case and traced how the 11.02 bitcoins moved through the online economy.

The Bitcoin address referenced in the complaint recieved a transaction for 11.02btc at 17:10:36 Blockchain time on the date noted as “seized.” This could mean that either the DEA took control of a computer with an unencrypted wallet and transferred the amount to a DEA controlled wallet, or more likely that this was not an in-person confiscation at all. This could be an illicit “Silk Road” transaction, where US authorities set up a “honeypot” selling account and accepted the 11.02btc as payment.

Aylor says that while his client knows what Bitcoin is, he is denying all connection to The Silk Road, the notorious illegal drug website, or even possessing bitcoins to begin with.

“[Hughes] did not have any activity, purchases, and was not a consumer in The Silk Road,” Aylor told Ars. “The bitcoins that were seized by the DEA were not his. [He has] never used Bitcoin, no—but he is familiar with what it is. Those were not his bitcoins that were seized by the government. We have a good idea whose bitcoins those belong to, but that is not something we’re disclosing at this time.”

The DEA has nothing better to do than squabble over $825 worth of bitcoins... for weed?! Really?! It probably cost the taxpayer $500,000 to arrest, prosecute and imprison this guy for selling flowers. DEA is fucked.

There was a guy who repaired VCRs ... yeah still and he purchased a whole case of tape head cleaner .. of course he was arrested and imprisoned by the DEA and local authorities. It actually seems really comical. He apparently found the case at 25% of the normal price and so bought the whole case of 32 bottles.

The DEA has nothing better to do than squabble over $825 worth of bitcoins... for weed?! Really?! It probably cost the taxpayer $500,000 to arrest, prosecute and imprison this guy for selling flowers. DEA is fucked.

More like our need to police every action an individual wants to take is fucked. It baffles me that we, those of us in the US, feel the need to prosecute, convict (accept a plea deal), and jail so many people under the guise of our own protection.

Hey, I totally know that Casey Jones guy. Hope he's doing okay...last month some crazy mofo who calls himself the Shredder and looks like the love child of a can opener and some sort of hedgehog-samurai stabbed him in the guts with his freaky spike-gauntlet things.

This guy is being prosecuted locally, not by the DEA; here are the details:

Quote:

Charleston police moved against Hughes last month, charging him with distributing marijuana and prescription pills after a June 5 raid on his apartment, according to county court records and a police incident report. The charges stem from 10 bags of the narcotic Suboxone found in Hughes’ bedroom during the search and two undercover drug buys that occurred in April, according to arrest affidavits. He is accused of selling .77 grams of the muscle relaxant Clozepam and 10.7 grams of marijuana to informants working with police, the affidavits said.

The search of his apartment also uncovered digital scales, a small amount of marijuana, various white powders and pills, computer equipment, a loaded pistol and other items, a police report noted.

He really doesn't seem like someone who would be using Silk Road; these are very minor dealing offenses (the marijuana offense is a misdemeanor in my jurisdiction) and the other offenses are minor felonies that could be be sentenced as misdemeanors. (Depending on the amount of suboxone found; the story doesn't specify whether each "bag" found contains two pills or 30 pills).

The search of his apartment also uncovered digital scales, a small amount of marijuana, various white powders and pills, computer equipment, a loaded pistol and other items, a police report noted.

I just love how the media loves to point out that "police found this, that and some other stuff and a loaded gun too". unless the person is a felon and isn't allowed to have a firearm, or unless the firearm(s) were known to be stolen, then i see no reason to point it out. just like when they mentioned they found computer equipment. they probably found a cell phone too! and knives (in the kitchen)!

if police were to search my house, they'd find lots of prescription meds, white powders (sugar, flour, unmixed concrete, pesticides), excessive amounts of computer equipment, small scales (dietary), and *gasp* TWO loaded handguns and a few thousand rounds of ammo for each. does that make me a criminal too? my guns are locked in a safe, but most of the ammo isn't - it's just out of reach of the kids, since at this point, it only poses a choking hazard to them.

i'll probably get downvoted, but it just irks me that people who are arrested for one thing (selling drugs - which i'm ambivalent about), and then the police and/or media (usually just the media) tries to make it sound worse by saying "hey, we found all this other perfectly legal stuff too so it must be worse!"

The DEA has nothing better to do than squabble over $825 worth of bitcoins... for weed?! Really?! It probably cost the taxpayer $500,000 to arrest, prosecute and imprison this guy for selling flowers. DEA is fucked.

Argue against the law all you want, but don't complain about the proper application of the law.

I can and I will. The laws are retarded. Created for nothing but social controls. It was never a War on Drugs, it has always been a war on personal freedoms. The DEA is a scam. They do no good for any thing or anyone. The so-called War on Drugs will never be "won". It is hopeless and another solution needs to be found.

This sounds a lot like "You say these are mine? Prove it." to me. It will be interesting to see how the court handles the inherent anonymity of bitcoins.

That said, bitcoins aren't contraband, I guess they're being treated as accessories or something? It's like the cops finding some cash in your wallet and pressing a case that you were planning to buy drugs with it. That's not going to fly.

The search of his apartment also uncovered digital scales, a small amount of marijuana, various white powders and pills, computer equipment, a loaded pistol and other items, a police report noted.

I just love how the media loves to point out that "police found this, that and some other stuff and a loaded gun too". unless the person is a felon and isn't allowed to have a firearm, or unless the firearm(s) were known to be stolen, then i see no reason to point it out. just like when they mentioned they found computer equipment. they probably found a cell phone too! and knives (in the kitchen)!

if police were to search my house, they'd find lots of prescription meds, white powders (sugar, flour, unmixed concrete, pesticides), excessive amounts of computer equipment, small scales (dietary), and *gasp* TWO loaded handguns and a few thousand rounds of ammo for each. does that make me a criminal too? my guns are locked in a safe, but most of the ammo isn't - it's just out of reach of the kids, since at this point, it only poses a choking hazard to them.

i'll probably get downvoted, but it just irks me that people who are arrested for one thing (selling drugs - which i'm ambivalent about), and then the police and/or media (usually just the media) tries to make it sound worse by saying "hey, we found all this other perfectly legal stuff too so it must be worse!"

edit: remove extra quotes & clarify

"If it bleeds it leads" is an old media mantra. With the tendency for the police to trumpet drug arrests out of porportion with the acutal facts and the media to breathlessly report every "important" if irrelevant detail you have a situation where one should wonder want the actual facts are.

... my guns are locked in a safe, but most of the ammo isn't - it's just out of reach of the kids, since at this point, it only poses a choking hazard to them...

Oh yeah? Well what happens when they clamp it in a vice and hit it with a pick hammer, or pan fry it, or cut off a lamp cord and short 120 volts across it?Seriously though, if you've got a gun safe why not lock up your ammo? And why are guns in a safe loaded?

This sounds a lot like "You say these are mine? Prove it." to me. It will be interesting to see how the court handles the inherent anonymity of bitcoins.

That said, bitcoins aren't contraband, I guess they're being treated as accessories or something? It's like the cops finding some cash in your wallet and pressing a case that you were planning to buy drugs with it. That's not going to fly.

Sounded more to me like the cops finding some cash and pressing the case that they were the profit from selling the drugs - which would then, as far as I know, be perfectly legal to seize. (Not saying I agree or disagree, that's just how I read it... albeit I didn't read very carefully.)

There was a guy who repaired VCRs ... yeah still and he purchased a whole case of tape head cleaner .. of course he was arrested and imprisoned by the DEA and local authorities. It actually seems really comical. He apparently found the case at 25% of the normal price and so bought the whole case of 32 bottles.

isn't head cleaner just 99% isopropyl alcohol? i wasn't aware that was a controlled substance.

The DEA has nothing better to do than squabble over $825 worth of bitcoins... for weed?! Really?! It probably cost the taxpayer $500,000 to arrest, prosecute and imprison this guy for selling flowers. DEA is fucked.

Argue against the law all you want, but don't complain about the proper application of the law.

pity only a few your banksters, traders etc have been charged with anything, even though they also hav been caught with their hands in the till. how about a fair and even application of the law in the usa.

... my guns are locked in a safe, but most of the ammo isn't - it's just out of reach of the kids, since at this point, it only poses a choking hazard to them...

Oh yeah? Well what happens when they clamp it in a vice and hit it with a pick hammer, or pan fry it, or cut off a lamp cord and short 120 volts across it?Seriously though, if you've got a gun safe why not lock up your ammo? And why are guns in a safe loaded?

i'll be impressed when a 1 or 3 year old child figures out any of those things. once the kids get old enough and mature enough, i'll be teaching them proper gun safety as well.

the safe is one of those small ones just barely big enough to hold 2 pistols and a couple magazines, and has quick access combo buttons. technically they aren't loaded, but there are two mags full of hollowpoints in the safe right next to them, so they could be hot in under 5 seconds, including time to open the safe, grab gun, slam in a mag and drop the slide release.

they're in the safe to keep them away from kids and nosy houseguests, but are accessible to me and my wife for home defense. i hope i never have to use them anywhere outside the range. and target practice is the only reason i have so much ammo - i buy several boxes at a time when the prices come back down to earth.

The search of his apartment also uncovered digital scales, a small amount of marijuana, various white powders and pills, computer equipment, a loaded pistol and other items, a police report noted.

I just love how the media loves to point out that "police found this, that and some other stuff and a loaded gun too". unless the person is a felon and isn't allowed to have a firearm, or unless the firearm(s) were known to be stolen, then i see no reason to point it out. just like when they mentioned they found computer equipment. they probably found a cell phone too! and knives (in the kitchen)!

if police were to search my house, they'd find lots of prescription meds, white powders (sugar, flour, unmixed concrete, pesticides), excessive amounts of computer equipment, small scales (dietary), and *gasp* TWO loaded handguns and a few thousand rounds of ammo for each. does that make me a criminal too? my guns are locked in a safe, but most of the ammo isn't - it's just out of reach of the kids, since at this point, it only poses a choking hazard to them.

i'll probably get downvoted, but it just irks me that people who are arrested for one thing (selling drugs - which i'm ambivalent about), and then the police and/or media (usually just the media) tries to make it sound worse by saying "hey, we found all this other perfectly legal stuff too so it must be worse!"

edit: remove extra quotes & clarify

A law abiding computer geek with a loaded gun vs an alleged criminal drug dealer with a loaded gun. Guns do not sell drugs nor browse the internet, only people do.

The search of his apartment also uncovered digital scales, a small amount of marijuana, various white powders and pills, computer equipment, a loaded pistol and other items, a police report noted.

I just love how the media loves to point out that "police found this, that and some other stuff and a loaded gun too". unless the person is a felon and isn't allowed to have a firearm, or unless the firearm(s) were known to be stolen, then i see no reason to point it out. just like when they mentioned they found computer equipment. they probably found a cell phone too! and knives (in the kitchen)! ~snip~

A law abiding computer geek with a loaded gun vs an alleged criminal drug dealer with a loaded gun. Guns do not sell drugs nor browse the internet, only people do.

my point is that possessing a gun is not illegal (except if it's stolen or you're a felon). what if they didn't find a gun, but instead found a few machetes? or samurai swords? or slingshots for cryin' out loud. you can kill someone with a slingshot almost as easily as with a handgun if you choose the right kind of slingshot and projectiles.

or even better - what if they didn't find any weapons at all, but the guy was a black belt martial artist or former SEAL (who made some stupid decisions)? you don't need weapons to kill someone with that level of training.

if police were to search my house, they'd find lots of prescription meds, white powders (sugar, flour, unmixed concrete, pesticides), excessive amounts of computer equipment, small scales (dietary), and *gasp* TWO loaded handguns and a few thousand rounds of ammo for each. does that make me a criminal too? my guns are locked in a safe, but most of the ammo isn't - it's just out of reach of the kids, since at this point, it only poses a choking hazard to them.

No, having a gun doesn't make you a criminal but if you were arrested for being a criminal then it would make you a criminal with a gun - and criminals with a guns have been known to use them criminally. ;-)

... my guns are locked in a safe, but most of the ammo isn't - it's just out of reach of the kids, since at this point, it only poses a choking hazard to them...

Emphasis addedOh yeah? Well what happens when they clamp it in a vice and hit it with a pick hammer, or pan fry it, or cut off a lamp cord and short 120 volts across it?Seriously though, if you've got a gun safe why not lock up your ammo? And why are guns in a safe loaded?

His children are young enough to pick up a bullet and pop it in their mouth, and young enough to be interested in doing that. At that age they don't get to use vices, hammers, frying pans, cord cutters and electricity. ;o)

There was a guy who repaired VCRs ... yeah still and he purchased a whole case of tape head cleaner .. of course he was arrested and imprisoned by the DEA and local authorities. It actually seems really comical. He apparently found the case at 25% of the normal price and so bought the whole case of 32 bottles.

isn't head cleaner just 99% isopropyl alcohol? i wasn't aware that was a controlled substance.

my point is that possessing a gun is not illegal (except if it's stolen or you're a felon). what if they didn't find a gun, but instead found a few machetes? or samurai swords? or slingshots for cryin' out loud. you can kill someone with a slingshot almost as easily as with a handgun if you choose the right kind of slingshot and projectiles.

or even better - what if they didn't find any weapons at all, but the guy was a black belt martial artist or former SEAL (who made some stupid decisions)? you don't need weapons to kill someone with that level of training.

Is not illegal, but in this case it is relevant because this is an illegal activity that is generally associated with violence.

my point is that possessing a gun is not illegal (except if it's stolen or you're a felon). what if they didn't find a gun, but instead found a few machetes? or samurai swords? or slingshots for cryin' out loud. you can kill someone with a slingshot almost as easily as with a handgun if you choose the right kind of slingshot and projectiles.

Then they'd report it. And not only would they have found a weapon but they'd have found an interesting weapon.

if police were to search my house, they'd find lots of prescription meds, white powders (sugar, flour, unmixed concrete, pesticides), excessive amounts of computer equipment, small scales (dietary), and *gasp* TWO loaded handguns and a few thousand rounds of ammo for each. does that make me a criminal too? my guns are locked in a safe, but most of the ammo isn't - it's just out of reach of the kids, since at this point, it only poses a choking hazard to them.

No, having a gun doesn't make you a criminal but if you were arrested for being a criminal then it would make you a criminal with a gun - and criminals with a guns have been known to use them criminally. ;-)

No it wouldn't, if you were convicted then maybe you were a criminal with a gun (we could argue the technicalities of if you are a criminal if you haven't been convicted *yet*.), however you are not a criminal by any means just because you were arrested for a criminal charge.

PS. You can't arrest someone for being a criminal only for committing a criminal act... otherwise you could never get out of jail after being convicted.

The DEA has nothing better to do than squabble over $825 worth of bitcoins... for weed?! Really?! It probably cost the taxpayer $500,000 to arrest, prosecute and imprison this guy for selling flowers. DEA is fucked.

Argue against the law all you want, but don't complain about the proper application of the law.

pity only a few your banksters, traders etc have been charged with anything, even though they also hav been caught with their hands in the till. how about a fair and even application of the law in the usa.

What a great point. I bet no one on Ars has ever thought of this connection.

Because it's clearly hypocritical to enforce any laws if enough bankers haven't been arrested.

The search of his apartment also uncovered digital scales, a small amount of marijuana, various white powders and pills, computer equipment, a loaded pistol and other items, a police report noted.

I just love how the media loves to point out that "police found this, that and some other stuff and a loaded gun too". unless the person is a felon and isn't allowed to have a firearm, or unless the firearm(s) were known to be stolen, then i see no reason to point it out. just like when they mentioned they found computer equipment. they probably found a cell phone too! and knives (in the kitchen)! ~snip~

A law abiding computer geek with a loaded gun vs an alleged criminal drug dealer with a loaded gun. Guns do not sell drugs nor browse the internet, only people do.

my point is that possessing a gun is not illegal (except if it's stolen or you're a felon). what if they didn't find a gun, but instead found a few machetes? or samurai swords? or slingshots for cryin' out loud. you can kill someone with a slingshot almost as easily as with a handgun if you choose the right kind of slingshot and projectiles.

or even better - what if they didn't find any weapons at all, but the guy was a black belt martial artist or former SEAL (who made some stupid decisions)? you don't need weapons to kill someone with that level of training.

In many states, possessing a gun IS illegal, without a license. This is a fact. Did he have a license? That we don't know.

No, having a gun doesn't make you a criminal but if you were arrested for being a criminal then it would make you a criminal with a gun - and criminals with a guns have been known to use them criminally. ;-)

No it wouldn't, if you were convicted then maybe you were a criminal with a gun (we could argue the technicalities of if you are a criminal if you haven't been convicted *yet*.), however you are not a criminal by any means just because you were arrested for a criminal charge.

PS. You can't arrest someone for being a criminal only for committing a criminal act... otherwise you could never get out of jail after being convicted.

Congratulations, your PS contains the meaning of "arrested for being a criminal". If you are arrested while undeniably committing a crime, the fact that you haven't been convicted is immaterial. If you subsequently fail to get convicted then you are not a non-criminal, you are a criminal who got away with it. Likewise, if you live a life of crime but never get arrested, you are not a non-criminal, you are a successful criminal.

The search of his apartment also uncovered digital scales, a small amount of marijuana, various white powders and pills, computer equipment, a loaded pistol and other items, a police report noted.

I just love how the media loves to point out that "police found this, that and some other stuff and a loaded gun too". unless the person is a felon and isn't allowed to have a firearm, or unless the firearm(s) were known to be stolen, then i see no reason to point it out. just like when they mentioned they found computer equipment. they probably found a cell phone too! and knives (in the kitchen)! ~snip~

A law abiding computer geek with a loaded gun vs an alleged criminal drug dealer with a loaded gun. Guns do not sell drugs nor browse the internet, only people do.

my point is that possessing a gun is not illegal (except if it's stolen or you're a felon). what if they didn't find a gun, but instead found a few machetes? or samurai swords? or slingshots for cryin' out loud. you can kill someone with a slingshot almost as easily as with a handgun if you choose the right kind of slingshot and projectiles.

or even better - what if they didn't find any weapons at all, but the guy was a black belt martial artist or former SEAL (who made some stupid decisions)? you don't need weapons to kill someone with that level of training.

In many states, possessing a gun IS illegal, without a license. This is a fact. Did he have a license? That we don't know.

Please find a list of the states in which possession of a firearm in your home in and of itself is illegal, and tell us if that state(SC) is one of them(it isn't).

(nvr mind did it myself and updated)Conneticut, DC(not a state), Hawaii, Illinois, Mass, NJ. 5 states of 50 require a permit to buy a gun. South Carolina is not one of them. However, in some of those if you already had a firearm from before the law went into effect you may be exempt.

Perfect timing, considering 18 years ago today was the last show they would ever perform... :-(

Anyone remember Operation Drop Dead where they would hang out in the parking lot and bust people? Scum bags (coming from someone who chooses not to participate, but will defend others personal choices...)

DEA, NSA, I hate them them all. Nothing but government institutions to control & monitor citizens. Stick that in your databases, I want to make sure the sentiment is preserved forever.

The DEA has nothing better to do than squabble over $825 worth of bitcoins... for weed?! Really?! It probably cost the taxpayer $500,000 to arrest, prosecute and imprison this guy for selling flowers. DEA is fucked.

Argue against the law all you want, but don't complain about the proper application of the law.

I can and I will. The laws are retarded. Created for nothing but social controls. It was never a War on Drugs, it has always been a war on personal freedoms. The DEA is a scam. They do no good for any thing or anyone. The so-called War on Drugs will never be "won". It is hopeless and another solution needs to be found.

On top of which ALL federal drug laws are unconstitutional(save ones regarding interstate commerce). You know the part about all other things being up to the states to regulate. (help me out here somebody with constitutional law experience)

The search of his apartment also uncovered digital scales, a small amount of marijuana, various white powders and pills, computer equipment, a loaded pistol and other items, a police report noted.

I just love how the media loves to point out that "police found this, that and some other stuff and a loaded gun too". unless the person is a felon and isn't allowed to have a firearm, or unless the firearm(s) were known to be stolen, then i see no reason to point it out. just like when they mentioned they found computer equipment. they probably found a cell phone too! and knives (in the kitchen)! ~snip~

A law abiding computer geek with a loaded gun vs an alleged criminal drug dealer with a loaded gun. Guns do not sell drugs nor browse the internet, only people do.

my point is that possessing a gun is not illegal (except if it's stolen or you're a felon). what if they didn't find a gun, but instead found a few machetes? or samurai swords? or slingshots for cryin' out loud. you can kill someone with a slingshot almost as easily as with a handgun if you choose the right kind of slingshot and projectiles.

or even better - what if they didn't find any weapons at all, but the guy was a black belt martial artist or former SEAL (who made some stupid decisions)? you don't need weapons to kill someone with that level of training.

No but if you are arrested for a crime and you have a gun it may increase the charges.

No, having a gun doesn't make you a criminal but if you were arrested for being a criminal then it would make you a criminal with a gun - and criminals with a guns have been known to use them criminally. ;-)

Please find a list of the states in which possession of a firearm in your home in and of itself is illegal, and tell us if that state(SC) is one of them(it isn't).

(nvr mind did it myself and updated)Conneticut, DC(not a state), Hawaii, Illinois, Mass, NJ. 5 states of 50 require a permit to buy a gun. South Carolina is not one of them. However, in some of those if you already had a firearm from before the law went into effect you may be exempt.

is that for pistols/handguns or for big bore rifles? and are there laws about giving weapons as gifts or person-to-person sale in those states? it's possible he didn't buy the gun from a retail store or FFL. granted i live in texas, which (contrary to stereotypes) does NOT have the most relaxed gun laws in the US, and one of my handguns was given to me by my brother. since texas doesn't require gun registration, there was nothing special about him giving it to me. all i had to do was say thank you. wouldn't surprise me to hear that plenty of other states (including SC) are the same.

... my guns are locked in a safe, but most of the ammo isn't - it's just out of reach of the kids, since at this point, it only poses a choking hazard to them...

Emphasis addedOh yeah? Well what happens when they clamp it in a vice and hit it with a pick hammer, or pan fry it, or cut off a lamp cord and short 120 volts across it?Seriously though, if you've got a gun safe why not lock up your ammo? And why are guns in a safe loaded?

His children are young enough to pick up a bullet and pop it in their mouth, and young enough to be interested in doing that. At that age they don't get to use vices, hammers, frying pans, cord cutters and electricity. ;o)

well the little one likes to take out the pots and pans and bang on them. it's apparently quite hilarious to him.

also - i think (though i'm not about to test the theories) that only your first method would actually do anything. in a frying pan the lead would probably melt before anything else happened (thoug with my fmj target rounds that wouldn't do much that's visible). not sure what shorting 120vac across a cartridge would do, but i don't expect it'd do much besides arc and make a pop sound... and probably give the person holding the wire a mild electrocution - which they'd deserve for trying something so stupid.

dad taught me about the immediacy of gunfire when i was around 12-13 yrs old. we were shooting cans off a fence, but unknown to me, one of them was full of tomato sauce. so i was just plinking along and when i got to the tomato sauce one and saw it explode in a red mist, he said something like "that's how fast a bullet can kill." and i earned a whole other level of respect and caution for them - without anyone getting hurt.